Bitcoin’s (BTC) price recently experienced a 7.8% decline, dropping to $60,000. However, as the king of cryptocurrencies recovers from this drawdown, support from a significant group of investors could push the price higher. 

Institutional investors, in particular, are playing a key role in driving Bitcoin’s upward momentum, and their influence might propel BTC toward the $70,000 mark.

Bitcoin Notes Solid Demand

Institutional investors are crucial to Bitcoin’s potential recovery and future growth. According to data from Glassnode, Bitcoin exchange-traded funds (ETFs) now hold over $58 billion worth of BTC. This volume accounts for approximately 4.6% of Bitcoin’s circulating supply, indicating strong demand for regulated exposure to the cryptocurrency. 

The institutional demand suggests that large-scale investors view Bitcoin as a viable and valuable asset. As these investors continue to accumulate BTC through ETFs and other regulated means, they contribute to the coin’s long-term growth and stability. Their influence could be key in pushing Bitcoin’s price toward $70,000, especially if demand remains consistent.

Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024

Bitcoin’s overall macro momentum also appears favorable for a potential price rise. The net realized profit/loss indicator, which tracks investor sentiment and behavior, recently noted a downtick, signaling that profit booking is slowing down. This shift suggests that selling pressure is decreasing, giving Bitcoin the necessary breathing room for a comeback.

As selling sentiment wanes, Bitcoin’s price could benefit from a more balanced market. This reduction in profit-taking allows for a more stable price environment, increasing the chances of a sustained recovery. With institutional demand remaining strong and selli

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Author: Aaryamann Shrivastava